The Case of Mrs. C
It appears that no matter how carefully we think we have planned for our old age, we can often miscalculate our needs and how long our nestegg will carry us. We offer the history of Mrs. C who was a retired banking officer, very careful in her investments and thought that she had carefully planned her old age down to the details. Unfortunately, she miscalculated and failed to take careful notice of how fast the demands of her life were depleting her life savings.
Mrs. C had returned to this area at the urging of an old friend when her husband died and she felt that his relatives were attempting to take financial advantage of her. She had been married for over 50 years, was childless, and had outlived all her other relatives so she was basically alone. Once she relocated to this State, she found that the adjustment was difficult because her friend took ill and died. She had no other friends or support system. She was a loner of sorts and the social opportunities offered in the senior mobilehome park where she bought her mobile did not appeal to her. She functioned just fine in the very beginning, but within a year or two she began to develop health problems. She lost her ability to drive, she was having some memory problems, and she was experiencing some depression that had an effect on her personal healthcare, self-care, and daily function. The biggest health care problem was diabetes.
Over a period of four years, Mrs. C had depleted her savings by paying for home health care agencies, nursing services, renting an expensive pill dispensing machine and a monthly visit by the company to fill the machine, she paid a local area on aging program to come in monthly to help her with her bills and monitor her finances, and she had to pay for transportation to get her groceries, get to medical appointments, and take care of her two cats when she was hospitalized.
When it became obvious to the home health care agency that they had exhausted her funds and might not be paid, they contacted us to help her.
When we first met Mrs. C she was in very poor condition following a recent discharge from the hospital for an upper respiratory infection and problems with her diabetes. She presented well mentally, and was upset with herself that she failed to do a better job at a longterm care plan for herself. She wanted to remain in her home til her dying day, and she did not want to be separated from her cats. However, she recognized that she needed more help and voluntarily agreed to a conservatorship. The overall goal was to formulate a plan to keep her in the home and the only remaining asset was her home.
With the consent of Mrs. C, a conservatorship was established under the supervision of the local courts. With rapid speed and approval of Mrs. C, we set about to investigate all the options to finance all the personal and medical needs necessary to remain in her home. However, we discovered something new that would alter all future care plans. The home she owned outright was not a "stick" home, but a mobilehome and she paid space rent not a homeowner association fee. Her remaining cash assets were under $15,000.00 and she had mounting expenses including a number of credit cards and a new heating unit that she had been convinced she needed. We investigated several companies that specialize in reverse mortgages, five banks regarding refinancing of the home, reverse mortgages and a line of credit. We even went to her personal banker to see if she might get special consideration as a retiree. We learned that a mobilehome prevents the owner from all of these options when the mobilehome is located in a mobilehome park because the land is rented, not owned.
As it turned out, Mrs. C was extremely disappointed that we could not draw any equity from her lovely mobilehome. Her health was dramatically affected by the diabetes and after several hospitalizations, she required convalescent care. Her personal disappointment that her old age wasn't as well planned and covered as she thought brought her much sadness. In working with her, it was apparent that she could not return home and she gave instructions on her preferences as we sought a new home for her cats, liquidated her personal property and put the mobilehome on the market for sale. She stated that she was disappointed that she did not realize the drawbacks to owning a mobilehome instead of a "stick" house, and she never realized that living in a mobilehome park could become so troublesome when her lifestyle changed.
As it turned out, Mrs. C had done a very good job in preparing for her old age, but she was unable to project the real cost of in-home care. She miscalculated when she purchased her mobilehome and had it set up in a mobilehome park. She didn't anticipate depreciation of a mobilehome, the difficulties in resale, and she never knew that an emergency refinancing, homeowner line of credit or a reverse mortgage was simply not available. She was a very bright business woman so it was nothing more than not having all the information available to her.
As we prepare for our retirement, it is important to ask more questions and anticipate the issues of advancing old age and declining health. Can I turn this home into cash if I become ill and need in-home care? Are my investments available without penalty if I should experience a healthcare crisis? Is my estate plan complete or need an update to cover unanticipated issues?
For some of us, those "golden years" and declining health places us at greater risk of fraud and undue influence. Sometimes it isn't the misinformation as much as the omission of information that we need to watch for as we make those big financial decisions. Be wary and be wise. No matter how good it all looks, seek a second opinion to review your anticipated plans and consider those "what ifs." Talk to an attorney, a trusted financial advisor, or your local Area on Aging.
Mrs. C had returned to this area at the urging of an old friend when her husband died and she felt that his relatives were attempting to take financial advantage of her. She had been married for over 50 years, was childless, and had outlived all her other relatives so she was basically alone. Once she relocated to this State, she found that the adjustment was difficult because her friend took ill and died. She had no other friends or support system. She was a loner of sorts and the social opportunities offered in the senior mobilehome park where she bought her mobile did not appeal to her. She functioned just fine in the very beginning, but within a year or two she began to develop health problems. She lost her ability to drive, she was having some memory problems, and she was experiencing some depression that had an effect on her personal healthcare, self-care, and daily function. The biggest health care problem was diabetes.
Over a period of four years, Mrs. C had depleted her savings by paying for home health care agencies, nursing services, renting an expensive pill dispensing machine and a monthly visit by the company to fill the machine, she paid a local area on aging program to come in monthly to help her with her bills and monitor her finances, and she had to pay for transportation to get her groceries, get to medical appointments, and take care of her two cats when she was hospitalized.
When it became obvious to the home health care agency that they had exhausted her funds and might not be paid, they contacted us to help her.
When we first met Mrs. C she was in very poor condition following a recent discharge from the hospital for an upper respiratory infection and problems with her diabetes. She presented well mentally, and was upset with herself that she failed to do a better job at a longterm care plan for herself. She wanted to remain in her home til her dying day, and she did not want to be separated from her cats. However, she recognized that she needed more help and voluntarily agreed to a conservatorship. The overall goal was to formulate a plan to keep her in the home and the only remaining asset was her home.
With the consent of Mrs. C, a conservatorship was established under the supervision of the local courts. With rapid speed and approval of Mrs. C, we set about to investigate all the options to finance all the personal and medical needs necessary to remain in her home. However, we discovered something new that would alter all future care plans. The home she owned outright was not a "stick" home, but a mobilehome and she paid space rent not a homeowner association fee. Her remaining cash assets were under $15,000.00 and she had mounting expenses including a number of credit cards and a new heating unit that she had been convinced she needed. We investigated several companies that specialize in reverse mortgages, five banks regarding refinancing of the home, reverse mortgages and a line of credit. We even went to her personal banker to see if she might get special consideration as a retiree. We learned that a mobilehome prevents the owner from all of these options when the mobilehome is located in a mobilehome park because the land is rented, not owned.
As it turned out, Mrs. C was extremely disappointed that we could not draw any equity from her lovely mobilehome. Her health was dramatically affected by the diabetes and after several hospitalizations, she required convalescent care. Her personal disappointment that her old age wasn't as well planned and covered as she thought brought her much sadness. In working with her, it was apparent that she could not return home and she gave instructions on her preferences as we sought a new home for her cats, liquidated her personal property and put the mobilehome on the market for sale. She stated that she was disappointed that she did not realize the drawbacks to owning a mobilehome instead of a "stick" house, and she never realized that living in a mobilehome park could become so troublesome when her lifestyle changed.
As it turned out, Mrs. C had done a very good job in preparing for her old age, but she was unable to project the real cost of in-home care. She miscalculated when she purchased her mobilehome and had it set up in a mobilehome park. She didn't anticipate depreciation of a mobilehome, the difficulties in resale, and she never knew that an emergency refinancing, homeowner line of credit or a reverse mortgage was simply not available. She was a very bright business woman so it was nothing more than not having all the information available to her.
As we prepare for our retirement, it is important to ask more questions and anticipate the issues of advancing old age and declining health. Can I turn this home into cash if I become ill and need in-home care? Are my investments available without penalty if I should experience a healthcare crisis? Is my estate plan complete or need an update to cover unanticipated issues?
For some of us, those "golden years" and declining health places us at greater risk of fraud and undue influence. Sometimes it isn't the misinformation as much as the omission of information that we need to watch for as we make those big financial decisions. Be wary and be wise. No matter how good it all looks, seek a second opinion to review your anticipated plans and consider those "what ifs." Talk to an attorney, a trusted financial advisor, or your local Area on Aging.
posted @7:52 AM
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